RIL cuts polyester yarn price by Rs 2/kg

MUMBAI (makemystocks): Reliance Industries Ltd (BOM:500325) along with other yarn manufacturers has cut polyester yarn prices by Rs 2 per kg across all deniers from today. Denier is a tool to measure the mass density of yarn. The shares ended with a loss of 0.99 per cent from the previous close, on the Bombay Stock Exchange (BSE).

Yarn manufacturers have passed on the benefit of lower input prices to the end user, the trader said.

Prices of key raw materials- purified terephthalic acid and mono ethylene glycol for making polyester yarn have gone down around Rs 2.40 per kg due to lower petrochemical prices.

In June, the company had cut polyester prices by Rs 2.50 per kg.

In 2009-10, Reliance Industries - the largest producer of polyester in the world with facilities in India and Malaysia - had a yarn manufacturing capacity of 724,000 tonnes annually.

In his recent speech at the Reliance Industries annual general meeting, Chairman Mukesh Ambani had indicated about setting up 360,000 tonnes polyester filament yarn capacity along with an integrated 2.3 million tonnes of purified terephthalic acid facility.